Canada: Consumer prices likely jumped in January – BMO CM
|Benjamin Reitzes, Senior Economist at BMO Capital Markets, expects that the Canadian consumer prices likely jumped in January, as energy prices continued their upward march in the month.
Key Quotes
“January is the start of a seasonally strong period for CPI, as most of the annual increase in prices generally comes in the first five months of the year. Gasoline prices look to be up about 3%, with the new carbon tax in Ontario and Alberta providing an extra lift (other energy prices were lifted as well). However, Ontario cutting the provincial sales tax from electricity bills will offset some of the inflationary impact of the new carbon taxes. Our call on CPI would push annual inflation up two ticks to 1.7%.”
“This is the third month we’ll be seeing the new trio of the Bank of Canada’s core CPI measures. The trio averaged 1.7% in December, ranging from the common component’s 1.4% to the weighted median’s 2.0%. We anticipate the average of the trio will hold about steady, reflecting the still sizeable spare capacity in the Canadian economy.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.